What’s new on Zerodha Capital
We launched our loan against securities (LAS) product, Zerodha Capital, to help people avoid high-interest personal loans and credit card debt. Borrowing against your investments can be far more cost-effective, but many only realize how expensive unsecured credit is once they’re already paying for it.
Since starting full-scale operations in 2023, we’ve steadily expanded LAS. Along the way, feedback from customers and our own learnings have shaped the product. Now, we’re rolling out several updates to make LAS simpler, more accessible, and useful.
Longer tenure, up to 3 years
Earlier, loans could only be taken for 12 months. Now you can extend them up to 3 years. You just pay the monthly interest, and the principal can be repaid anytime without penalties. A longer tenure gives you more flexibility and ensures you’re not forced into early repayment when cash flow is tight.
Slab-based interest rates
We’ve introduced rates based on the loan amount:
- ₹25,000 to ₹50 lakh: 11% per annum (p.a.)
- ₹50 lakh to ₹1 crore: 10.75% p.a.
- ₹1 crore to ₹5 crore: 10.50% p.a.
- ₹5 crore to ₹10 crore: 10% p.a.
Your rate is fixed when you take the loan and won’t change with top-ups or repayments.
Simpler login with mobile OTP
You can now log in to Zerodha Capital with just your mobile number and an OTP. A separate Zerodha Capital Client ID will be created. When pledging shares, you’ll still need to log in to Kite to authorize your holdings.
Free credit score check
You can now check your credit score instantly on the platform. It’s a soft pull, so your rating won’t be affected. A detailed report from our partner, Experian, will be sent to your registered email.
Higher loan limit
The maximum loan amount has been increased from ₹1 crore to ₹10 crores, making it easier for users with larger portfolios to access funds for medical needs, business expenses, or property purchases.
Expanded approved securities
The list of approved securities has increased from 800 to 1,377. This includes more mutual funds and mid-cap stocks that have shown stability over time. Only stocks from NSE’s Group 1 list are allowed.
While RBI permits lending up to 50% of pledged securities, we maintain a 45% limit (55% haircut) to reduce the chances of margin calls during volatility. Check the full list here.
Higher daily pledge limit
You can now pledge up to 50 securities in a day, up from the earlier limit of 10.
Multiple bank accounts
Along with your primary account, you can now link up to 2 secondary bank accounts. Loan disbursals will always go to your primary account, but repayments can be made from any linked account.
Key terms
- Processing fee: 0.25% + GST (capped at ₹25,000)
- Minimum loan: ₹25,000
- Minimum top-up: ₹2,500
- Available only to resident Indian individuals
- Loan disbursed within 1 working day
Coming soon
We’re building more features to make LAS smoother:
- Loan against mutual funds with CAMS integration for direct pledging of MF units
- Payment mandates to auto-debit the monthly interest so you never miss a due date
- Non-Zerodha demat support to enable a fully online loan process for customers of other brokers
The idea behind LAS is for the borrowers to use the amount for genuine emergencies, not for speculation or trading. For detailed FAQs and terms, visit: zerodhacapital.com/tos/faq
If you have questions about these updates, please post them in the comments below.
